Economists often talk about “business cycles” as the best way to explain economic fluctuations like the current economic downturn. In truth, cycles play a tremendous role in driving our economy — businesses and consumers think and act in measurable ways over defined periods. But it’s a mistake to believe that all we can do is hold on until the next cycle when things will get better.
I view midtown Baltimore as a great example of down cycle defiance. While many are pointing to the credit crunch and Wall Street meltdown as the way it is going to be for the foreseeable future, MICA, the Bozzuto Group, the University of Baltimore, and others are preparing for and helping to drive growth and development (both commercial and residential) in this key area of Baltimore. If you see the economy as a series of waves rather than a wheel, these organizations are surfing toward the crest, not hanging back in the trough.
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MICA recently dedicated its Gateway residential center, opening up living space for 215 students as well as a cafe, performance and studio space. Bozzuto and the Gould Property Company recently broke ground for its Fitzgerald residential and retail complex on a major undeveloped parcel owned by UB. That complex will feature shops, dining, nearly 300 luxury apartments, and a major parking facility. UB announced an architectural partnership with Germany’s Behnisch and Baltimore’s Ayers/Saint/Gross to design a world-class home for the University of Baltimore School of Law. UB also announced an innovative venture to encourage startup businesses and small companies to “incubate” in its Entrepreneurial Opportunity Center.
All of this activity — adding up to well more than $200 million — took place in less than six months. When you add to that the fact that the Kauffman Foundation and its New Economy Index just named Maryland as one of the top five states — ahead of California, New York, and North Carolina — in leading the nation’s transformation into a global, knowledge-based economy with innovation as its centerpiece, it is clear that the Baltimore region is not waiting for the next cycle.
There is a growing sense that intense redevelopment is moving north, through Station North, bridging North Avenue, and going all the way to Charles Village. For years, the city’s leadership, public and private, worried that this would never happen. But that was cyclical thinking. If you follow the Kauffman Foundation’s rubric, you’ll understand that the nature of the economy is changing — fueled by knowledge and innovation — and that is exactly what is happening in this region.
The Baltimore region has seen tough times before, going back to the late 1960s and early 1970s. Those cycles were real, but ultimately gave way to important change.
In 2008, our region’s economy is increasingly global, more deeply rooted in its composition of small business, presence of the federal government, prospering franchises and a host of other ventures that are remarkably interconnected and yet broadly independent. When you combine all of those components, our region may be stronger now than at any time since World War II.
We’re also smarter. We’re already thinking about how to get ready for a business climate that inevitably will improve. We’re sketching out the future, knitting together the pieces in anticipation of the next wave of growth. Everywhere, you can see the kind of growth that represents the future of this city and our region.
Let’s support this vision, where Baltimore is one of the brightest, boldest cities on the East Coast. Let’s think about how to link our neighborhoods, create new and improved centers of commerce and foster the physical and intellectual growth of our region. Cycles just make us dizzy — let’s catch a wave.
J. Thomas Sadowski is President and Chief Executive Officer of the Economic Alliance of Greater Baltimore and President of the Maryland Economic Development Association
